According to Payments Canada’s 2023 report, 1.06 billion e-transfers were sent in 2023 in Canada, and for the first time, online transfers surpassed electronic funds transfers (EFT). Interac e-Transfer® introduced for Canadians in 2003, and we thank INTERAC for making sending and receiving money simple, secure, and fast in Canada.
Interac e-Transfers allow individuals and businesses to send/receive money to anyone using an email address or phone number. But like any other payment method, Interac e-Transfer has its own pros and cons. Explore this topic further and learn about Interac e-Transfer’s advantages and disadvantages.
Interesting facts about Interac e-Transfer®
- INTERAC is a Canadian interbank network that facilitates customers and businesses to transfer funds securely within a few minutes.
- In 2023, more than 06 billion e-transfers with Interac were made by Canadians.
- Interac e-Transfer is a unique, secure and fast payment method to send or receive money via email.
- Interac e-Transfer is primarily linked with Canadian bank accounts, limiting its usage for international payment transactions.
Advantages of Interac e-Transfer
- High convenience and accessibility: Interac e-Transfer is one of the most convenient and accessible methods that users can utilize. You can effortlessly transfer money via just your email address or mobile number within minutes. This unique payment method reduces reliance on bank branches and physical checks and saves time and effort.
- State-of-the-Art Security Features: Interac e-Transfer is a well-known service with state-of-the-art security measures. The e-transfer uses encryption for every transaction, allowing users to generate a specific security question and answer known only to the sender and receiver. Also, payments are sent directly into the recipient’s bank account to minimize the risk of fraud and security breaches.
- Wide Acceptance: Because Interac e-Transfer is widely accepted by banks, other financial institutions, and businesses throughout Canada, it has become a common and secure payment method. It would be used e-transfer to pay a babysitter, for an awesome meal at a restaurant, or shop at a nearby marketplace.
- Urge Cost-Efficient: Compared to EFT or bank money transfer, Interac e-Transfer may work as an even more cost-effective payment method. You do incur some slightly small charges from the bank in sending and receiving funds through Interac, but far less than any money transfer or wire transfer fees.
- No Additional Apps Required: Most payment methods require you to use apps on your mobile whereas Interac e-Transfer can already be done from existing online banking apps that you may already have.
Disadvantages of Interac e-Transfer
- Transaction Limits: The first issue with Interact e-Transfer is the Transaction Limit. Individual banks and credit unions also set daily, weekly, and monthly transaction limits on e-transfers. That might be irritating for some users, especially those who use apps often or prefer to send larger amounts of cash.
- Some Users Have to Pay Fees: It is a fact that Interac e-Transfer is cheaper than other payment modes, however some users have to pay nominal fees. Fees are small, but for regular users or those sending large amounts of money they can be a bit of a burden.
- Depends on Operating Hours and Systems: Interac e-Transfer is okay for 24/7 usages, but if you want the cash-out, it ultimately relies on banking hours or system repair. On certain occasions, such dependency can lead to a hassle, particularly in cases of instant money transactions or emergency money transfers.
- Just for Canadian Banks: Uses Interac e-Transfer to transfer funds between Canadian banks. It may sound bad for international transactions and those people who wishing to send money outside of Canada will have to turn to service providers of alternative solutions.
- Humidity for Error: The fact that the service so depends on using the correct email or phone number for the recipient, and also on creating a secure and memorable security question leaves plenty of room for dictation. A small mistake here can lead to failed transactions or funds being sent to the wrong recipients.
Some Popular Alternatives to Interac e-Transfer in Canada
- Electronic Fund Transfers (EFTs): EFTs transfer is a secure and quick method of sending and receiving money online from one bank to another. Usually, EFTs are widely used to set up automated payments of bills.
- Wire Transfers: The best and legit alternative to Interac e-Transfers is using wire transfers. This payment method also benefited non-tech individuals who prefer to visit their banks.
- Money Transfer Services: Some options like PayPal offer electronic transfers between two e-wallets.
- Physical Cheques: Old but still reliable payment method for many individuals in Canada. Cheques mainly rely on physical paper cheques and are highly used among older people who don’t trust the digital age.
Conclusion
Every alternative has unique pros and cons, such as faster processing, lower or high fees, or cross-border international limitations. However, Interac e-Transfer is still highly preferred by modern-age Canadians because of its considerable factors like convenience, speed, security, and cost-effectiveness. Choosing a payment method is personal, but ensure security and never share details like security questions or e-transfer reference numbers with anyone.
Expert Financial Writer
Starting his career as a financial advisor and freelance writer, Jonathan has worked in the Canadian finance and loan market for the past 12 years and gained tremendous knowledge related to almost all types of loans. Jonathan’s writing has been published on platforms like MSN, Finance, Yahoo, and more. His main USP is translating financial jargon into more manageable and accessible, informative pieces that benefit the readers.
